We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Chaman Lal Setia Exports Ltd.'s (NSE:CLSEL) CEO For Now

Key Insights

• Chaman Lal Setia Exports to hold its Annual General Meeting on 28th of September
• Salary of ₹14.4m is part of CEO Vijay Setia's total remuneration
• The overall pay is 62% above the industry average
• Over the past three years, Chaman Lal Setia Exports' EPS grew by 16% and over the past three years, the total shareholder return was 104%

Under the guidance of CEO Vijay Setia, Chaman Lal Setia Exports Ltd. (NSE:CLSEL) has performed reasonably well recently. As shareholders go into the upcoming AGM on 28th of September, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for Chaman Lal Setia Exports

Comparing Chaman Lal Setia Exports Ltd.'s CEO Compensation With The Industry

At the time of writing, our data shows that Chaman Lal Setia Exports Ltd. has a market capitalization of ₹13b, and reported total annual CEO compensation of ₹24m for the year to March 2024. That's a notable increase of 23% on last year. We note that the salary of ₹14.4m makes up a sizeable portion of the total compensation received by the CEO.

For comparison, other companies in the Indian Food industry with market capitalizations ranging between ₹8.3b and ₹33b had a median total CEO compensation of ₹15m. Accordingly, our analysis reveals that Chaman Lal Setia Exports Ltd. pays Vijay Setia north of the industry median. Moreover, Vijay Setia also holds ₹4.6b worth of Chaman Lal Setia Exports stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	₹14m	₹9.6m	59%
Other	₹10m	₹10m	41%
Total Compensation	₹24m	₹20m	100%

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. It's interesting to note that Chaman Lal Setia Exports allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Chaman Lal Setia Exports Ltd.'s Growth Numbers

Chaman Lal Setia Exports Ltd. has seen its earnings per share (EPS) increase by 16% a year over the past three years. Its revenue is up 17% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Chaman Lal Setia Exports Ltd. Been A Good Investment?

Boasting a total shareholder return of 104% over three years, Chaman Lal Setia Exports Ltd. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Chaman Lal Setia Exports that you should be aware of before investing.

Important note: Chaman Lal Setia Exports is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.